Ch 12 Traditional & E-contracts

Question 1

Contract

Answer 1

Agreement that can be enforced in court

Question 2

Bilateral contract

Answer 2

Offeror makes an offer to the offeree

Offeree must promise to perform

Question 3

Unilateral

Answer 3

Offeree can accept offer only by completing the contract performance

Question 4

Formal contract

Answer 4

Statutes or rules which state that a contract must be in writing to be enforceable

Question 5

Void

Answer 5

No contract

Question 6

Voidable

Answer 6

Valid contract that can be avoided at the option of one of the parties

Question 7

Requirements of a valid contract

Answer 7

Agreement, consideration, contractual capacity, legality

Question 8

Agreement

Answer 8

The offer AND acceptance

Question 9

Requirements for offer

Answer 9

Serious intention, definition of terms, communication

Question 10

Offeror’s Serious Intention

Answer 10

Contract determined by what a reasonable person deems serious

Question 11

Intent may be lacking with:

Answer 11

Expression of opinion, statement of future intent, preliminary negotiations, invitations to bid, ads and price lists

Question 12

Expression of opinion

Answer 12

“I believe this car is worth $40,000 and I wouldn’t sell it for less”

Question 13

Statement of future intent

Answer 13

“If Panthers win the SB, I’ll move houses”

Question 14

Preliminary negotiations

Answer 14

Not a serious offer, just a suggestion

Question 15

Ads/price lists

Answer 15

Belk’s has wrong price in ad, not required to honor it

Question 16

Definiteness of terms requirements

Answer 16

Identify parties, object/subject matter of contract, consideration to be paid, time of payment/performance

Question 17

Communication

Answer 17

Offeree must have knowledge of offer by person or person’s agent

Question 18

Termination of offer may happen by

Answer 18

Action of the parties OR operation of law

Question 19

Revocation

Answer 19

Can withdraw anytime before offeree accepts offer OR effective when offeree or agent receives it

Question 20

Option contract

Answer 20

Promise to hold offer open for specified period of time in return of consideration

Question 21

Counteroffer

Answer 21

Rejection of initial offer but make a new one

Question 22

Mirror Image Rule

Answer 22

Any change in terms automatically terminates offer and substitutes counteroffer

Question 23

Termination by law if:

Answer 23

Lapse of time, destruction of subject matter, death/incompetence, supervening illegality

Question 24

Acceptance

Answer 24

Voluntary act, expressed or implied, that shows assent to terms

Question 25

Unequivocal acceptance

Answer 25

Mirror image, acceptance must mirror offer

Question 26

Silence

Answer 26

Only acceptance when offeree has duty to speak

Question 27

General rule of bilateral contracts

Answer 27

Acceptance timely if made before offer is revoked or terminated

Question 28

Mailbox rule

Answer 28

Acceptance effective the minute it's put in the mailbox

Question 29

Authorized means of acceptance

Answer 29

Sometimes the offer specifies how acceptance should be made

Question 30

Displaying the online offer should include

Answer 30

Seller's hyperlink to page with full contract

Question 31

Online provisions

Answer 31

Acceptance of terms, payment, return policy, disclaimer of liabilities, limitation on remedies, privacy policy, dispute resolution, forum selection clause, choice of law clause

Question 32

Choice of law clause

Answer 32

Disputes settled in accordance with law of particular jusidiction

Question 33

Online acceptances

Answer 33

Click on agreements, Shrink-wrap agreements, browse-wrap agreements

Question 34

Click on agreements

Answer 34

Binding contract can be formed by clicking a box indicating you agree

Question 35

Shrink wrap agreement

Answer 35

Contract terms inside box which party agrees on upon opening box

Question 36

Browse wrap agreement

Answer 36

Scroll to bottom and it says "by reading this you agree to terms"; usually unenforceable

Question 37

E-SIGN

Answer 37

Gives e-signatures & e-docs legal force; to be enforceable both parties must have prior agreement

Question 38

Consideration

Answer 38

Value given in return for promise or performance

Question 39

Consideration must have:

Answer 39

Legally sufficient value, bargain for exchange

Question 40

Legally sufficient value

Answer 40

Something of legal value in the eyes of the law, promise to do something

Question 41

Bargained for exchange

Answer 41

Something of legal value must be exchanged b/w parties to provide basis to bargain

Question 42

Contractual capacity

Answer 42

Legal ability to enter into a contractual relationship

Question 43

Certain situations where capacity may exist but contract is not legally binding

Answer 43

Minor, intoxication, mental incompetence

Question 44

Legality

Answer 44

Legality of a contract; if specific clause is illegal the rest can still be enforceable

Question 45

Contrary to public policy is generally

Answer 45

Void

Question 46

Contracts not to compete in employment

Answer 46

Enforceable as long as time and geographic terms are reasonable

Question 47

Unconscionable contracts

Answer 47

Procedural and substantive

Question 48

Procedural contract

Answer 48

Contracts with inconspicuous print is void

Question 49

Substantive contract

Answer 49

Contracts oppressive or overly harsh

Question 50

Exculpatory clause

Answer 50

Releases party from liability in event of monetary or physical injury no matter who's at fault

Question 51

Exculpatory clauses are enforceable when

Answer 51

They are not ambiguous or they don't shield parties from intentional conduct

Question 52

Statute of frauds that must be in writing

Answer 52

1. Interest in land 2. Yearly agreements 3. Collateral or secondary contracts 4. Promise for marriage 5. Sale of goods priced at $500 or more

Question 53

Transfer pf rights to third party is

Answer 53

Assignment

Question 54

Transfer of duties to third party is

Answer 54

Delegation

Question 55

Effect of delegation

Answer 55

Delegator remains liable if other doesn't perform